PALATIN TECHNOLOGIES INC 10-K

Item 9A. Controls and Procedures. Our management carried out an evaluation, with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, as of June 30, 2022, our disclosure controls and procedures were effective. A control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Management’s Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) or 15d-15(f) of the Exchange Act. Our internal control system was designed to provide reasonable assurance to management and the board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. There was no change in our internal control over financial reporting during the fourth quarter of the period covered by this Annual Report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2022. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework as adopted in 2013 . Based on its assessment, management believes that, as of June 30, 2022, our internal control over financial reporting is effective based on those criteria. Item 9B. Other Information. None. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 67 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance. Identification of Directors The following table sets forth the names, ages, positions and committee memberships of our current directors. All directors hold office until the next annual meeting of stockholders or until their successors have been elected and qualified. All current directors were elected at our annual stockholders’ meeting on June 24, 2022. NAME AGE POSITION WITH PALATIN Carl Spana, Ph.D. 60 Chief Executive Officer, President and a Director John K.A. Prendergast, Ph.D. (3) 68 Director, Chairman of the Board of Directors Robert K. deVeer, Jr. (1) (2) 76 Director J. Stanley Hull (1) (2) 70 Director Alan W. Dunton, M.D. (1) (2) 68 Director Arlene M. Morris (2) (3) 70 Director Anthony M. Manning, Ph.D. (1) (3) 60 Director ___________________ (1) Member of the audit committee. (2) Member of the compensation committee. (3) Member of the nominating and corporate governance committee. CARL SPANA, Ph.D., co-founder of Palatin, has been our Chief Executive Officer and President since June 14, 2000. He has been a director of Palatin since June 1996 and has been a director of our wholly owned subsidiary, RhoMed Incorporated, since July 1995. From June 1996 through June 14, 2000, Dr. Spana served as an executive vice president of the Company and our chief technical officer. From June 1993 to June 1996, Dr. Spana was vice president of Paramount Capital Investments, LLC, a biotechnology and biopharmaceutical merchant banking firm, and of The Castle Group Ltd., a medical venture capital firm. Through his work at Paramount Capital Investments and The Castle Group, Dr. Spana co-founded and acquired several private biotechnology firms. From July 1991 to June 1993, Dr. Spana was a Research Associate at Bristol-Myers Squibb, a publicly held pharmaceutical company, where he was involved in scientific research in the field of immunology. Dr. Spana received his Ph.D. in molecular biology from The Johns Hopkins University and his B.S. in biochemistry from Rutgers University. Dr. Spana’s qualifications for our board include his scientific expertise, leadership experience, business judgment, and industry knowledge. As a senior executive of Palatin for over twenty years, he provides in-depth knowledge of our company, our drug products under development and the competitive and corporate partnering landscape. JOHN K.A. PRENDERGAST, Ph.D., has served as the non-executive Chairman of the board since June 14, 2000, and as a director since August 1996. While Dr. Prendergast has served as a member of the board, he does not serve, and has not served, in a management or operational role with the Company. Dr. Prendergast has been president and sole stockholder of Summercloud Bay, Inc., an independent consulting firm providing services to the biotechnology industry, since 1993. Dr. Prendergast is lead director of Nighthawk Biosciences, Inc., a publicly traded clinical stage immunotherapy company, and a director and Executive Chairman of Recce Pharmaceuticals Ltd., a publicly traded Australian pharmaceutical company developing a new class of anti-infective agents. He was previously a member of the board of the life science companies AVAX Technologies, Inc., Avigen, Inc. and MediciNova, Inc. From October 1991 through December 1997, Dr. Prendergast was a managing director of The Castle Group Ltd., a medical venture capital firm. Dr. Prendergast received his M.Sc. and Ph.D. from the University of New South Wales, Sydney, Australia and a C.S.S. in administration and management from Harvard University. 68 Table of Contents Dr. Prendergast brings a historical perspective to our board coupled with extensive industry experience in corporate development and finance in the life sciences field. His prior service on other publicly traded company boards provides experience relevant to good corporate governance practices. ROBERT K. deVEER, Jr. has been a director of Palatin since November 1998. Since January 1997, Mr. deVeer has been the president of deVeer Capital LLC, a private investment company. He was a director of Solutia Inc., a publicly held chemical-based materials company, until its merger with Eastman Chemical Company in July 2012. From 1995 until his retirement in 1996, Mr. deVeer served as Managing Director, Head of Industrial Group, at New York-based Lehman Brothers. From 1973 to 1995, he held increasingly responsible positions at New York-based CS First Boston, including Head of Project Finance, Head of Industrials and Head of Natural Resources. He was a managing director, member of the investment banking committee and a trustee of the First Boston Foundation. He received a B.A. in economics from Yale University and an M.B.A. in finance from Stanford Graduate School of Business. Mr. deVeer has extensive experience in investment banking and corporate finance, including the financing of life sciences companies, and serves as the audit committee’s financial expert. J. STANLEY HULL has been a director of Palatin since September 2005. Mr. Hull has over three decades of experience in the field of sales, marketing, and drug development. Mr. Hull joined GlaxoSmithKline, a research-based pharmaceutical company, in October 1987 and retired as Senior Vice President, Pharmaceuticals – North America in May 2010. Mr. Hull was responsible for all commercial activities including sales, marketing, sales training, and office operations. Previously, Mr. Hull served in the R&D organization of Glaxo Wellcome as Vice President and Worldwide Director of Therapeutic Development and Product Strategy – Neurology and Psychiatry. Prior to his service in the R&D organization he was Vice President of Marketing – Infectious Diseases and Gastroenterology for Glaxo Wellcome-U.S. Mr. Hull started his career in the pharmaceutical industry with SmithKline and French Laboratories in 1978. Mr. Hull received his B.S. in business administration from the University of North Carolina at Greensboro. Mr. Hull has extensive experience in commercial operations, development, and marketing of pharmaceutical drugs and corporate alliances between pharmaceutical companies and biotechnology companies. ALAN W. DUNTON, M.D., has been a director of Palatin since June 2011. He founded Danerius, LLC, a biotechnology consulting company, in 2006. From November 2015 through March 2018, he was senior vice president of research, development, and regulatory affairs for Purdue Pharma L.P., with responsibilities for overall research strategy and development programs. From January 2007 to March 2009, Dr. Dunton served as president and chief executive officer of Panacos Pharmaceuticals Inc. and he served as a managing director of Panacos from March 2009 to January 2011. Dr. Dunton is currently a member of the board of directors of the publicly traded companies Recce Pharmaceuticals Ltd (ASX: RCE), CorMedix Inc. (NYSE: CRMD) and Oragenics, Inc. (NYSE: OGEN). He previously served on the board of directors of the publicly traded companies Targacept, Inc., EpiCept Corporation (as Non-Executive Chairman), Adams Respiratory Therapeutics, Inc. (acquired by Reckitt Benckiser Group plc), MediciNova, Inc. and Panacos Pharmaceuticals, Inc. Dr. Dunton has served as a director or executive officer of various pharmaceutical companies, and from 1994 to 2001, Dr. Dunton was a senior executive in various capacities in the Pharmaceuticals Group of Johnson & Johnson, including president and managing director of the Janssen Research Foundation, the primary global R&D organization for Johnson & Johnson. Dr. Dunton received his M.D. degree from New York University School of Medicine, where he completed his residency in internal medicine. He also was a Fellow in Clinical Pharmacology at the New York Hospital/Cornell University Medical Center. Dr. Dunton has extensive drug development, regulatory, and clinical research experience, having played a key role in the development of more than 20 products to regulatory approval, and also has extensive experience as an executive and officer for both large pharmaceutical companies and smaller biotechnology and biopharmaceutical companies. 69 Table of Contents ARLENE M. MORRIS has been a director of Palatin since June 2015. Since May 2015 she has served as the chief executive officer of Willow Advisors, LLC, a consultancy to biotech companies on business development, commercial development and corporate strategy. From April 2012 until May 2015, she was President and Chief Executive Officer of Syndax Pharmaceuticals, Inc., a privately held biopharmaceutical company focused on the development and commercialization of an epigenetic therapy for treatment-resistant cancers, and was a member of the board of directors from May 2011 until May 2015. From 2003 to January 2011, Ms. Morris served as the President, Chief Executive Officer and a member of the board of directors of Affymax, Inc., a publicly traded biotechnology company. Ms. Morris has also held various management and executive positions at Clearview Projects, Inc., a corporate advisory firm, Coulter Pharmaceutical, Inc., a publicly traded pharmaceutical company, Scios Inc., a publicly traded biopharmaceutical company, and Johnson & Johnson, a publicly traded healthcare company. She is currently a member of the board of directors of Viveve Medical, Inc., a publicly traded female healthcare medical device company, Viridian Therapeutics, Inc., a publicly traded therapeutic antibody company, and Cogent Biosciences, Inc., a publicly traded oncology biopharmaceutical company, and was a director of Neovacs SA, a publicly traded French company, Biodel Inc., a publicly traded specialty pharmaceutical company, from 2015 until its merger with Albireo Limited in 2016, and Dimension Therapeutics, Inc., a publicly traded gene therapy company, until its acquisition by Ultragenyx Pharmaceutical Inc. in 2017. Ms. Morris received a B.A. in Biology and Chemistry from Carlow College. Ms. Morris has extensive experience in the biotechnology industry, including prior leadership positions, senior management, and board service, and experience as chief executive officer of companies with product candidates in phase 3 clinical trials. ANTHONY M. MANNING, Ph.D., has been a director of Palatin since September 2017. Since March 2021, Dr. Manning has been providing scientific and strategic advice to biotechnology companies as the principal of Manning Bio Worldwide LLC. From 2013 until March 2021, Dr. Manning was senior vice president of research, and since 2018 was chief scientific officer, at Momenta Pharmaceuticals, Inc., a publicly traded biopharmaceutical company developing innovative therapeutics for rare immune-related diseases which was acquired by Johnson & Johnson in October 2020. From 2011 to 2013, he was senior vice president of research and development at Aileron Therapeutics, Inc., a publicly traded biopharmaceutical company developing stapled peptide therapeutics for cancers and other diseases. From 2007 to 2011, he was vice president and head of inflammation and autoimmune diseases research at Biogen, Inc., a publicly traded biopharmaceutical company developing medicines for neurological and neurodegenerative conditions. From 2002 to 2007, he was vice president and global therapy area head for Inflammation, Autoimmunity and Transplantation Research at Roche Pharmaceuticals, the pharmaceutical division of Roche Holding AG, and from 2000 to 2002 he was vice president of Pharmacia, a global pharmaceutical company acquired by Pfizer in 2002. Dr. Manning received his Ph.D., M.Sc. and B.Sc. from the University of Otago, Dunedin, New Zealand. Dr. Manning has extensive experience in translational research and development of new pharmaceutical products, and in pharmaceutical and biotechnology research, development, and business strategy. The Board and Its Committees Committees and meetings . The board has an audit committee, a compensation committee, and a nominating and corporate governance committee. During fiscal 2022, the board met four times, the audit committee met four times, the compensation committee met two times and the nominating and corporate governance committee met two times. Each director attended at least 75% of the total number of meetings of the board and committees of the board on which he or she served. The independent directors meet in executive sessions at least annually, following the annual board meeting. We do not have a policy requiring our directors to attend stockholder meetings. With the exception of Dr. Spana, the directors did not attend the virtual annual meeting of stockholders held on June 24, 2022. Audit committee . The audit committee reviews the engagement of the independent registered public accounting firm and reviews the independence of the independent registered public accounting firm. The audit committee also reviews the audit and non-audit fees of the independent registered public accounting firm and the adequacy of our internal control procedures. The audit committee is currently composed of four independent directors, Mr. deVeer (chair), and Dr. Dunton, Dr. Manning and Mr. Hull. The board has determined that the members of the audit committee are independent, as defined in the listing standards of the NYSE American and satisfy the requirements of the NYSE American as to financial literacy and expertise. The board has determined that at least one member of the committee, Mr. deVeer, is the audit committee financial expert as defined by Item 407 of Regulation S-K. The responsibilities of the audit committee are set forth in a written charter adopted by the board and updated as of October 1, 2013, a copy of which is available on our web site at www.palatin.com/investors/corporate-governance/. Compensation committee. The compensation committee reviews and recommends to the board on an annual basis employment agreements and compensation for our officers, directors, and some employees, and administers our 2011 Plan and the options still outstanding which were granted under previous stock option plans. The compensation committee is composed of Dr. Dunton (chair), Ms. Morris and Messrs. deVeer and Hull. The board has determined that the members of the compensation committee are independent, as defined in the listing standards of the NYSE American. Our Chief Executive Officer aids the compensation committee by providing annual recommendations regarding the compensation of all executive officers, other than himself. Our Chief Financial Officer supports the committee in its work by gathering, analyzing, and presenting data on our compensation arrangements and compensation in the marketplace. 70 Table of Contents The responsibilities of the compensation committee are set forth in a written charter adopted by the board effective October 1, 2013, a copy of which is available on our web site at www.palatin.com/investors/corporate-governance/. The committee administers our 2011 Plan, under which it has delegated to an officer its authority to grant stock options to employees and to a single-member committee of the board its authority to grant restricted stock units to officers and to grant options and restricted stock units to our consultants, but in either instance not to grant options or restricted stock units to themselves, any member of the board or officer, or any person subject to Section 16 of the Exchange Act. Nominating and corporate governance committee. The nominating and corporate governance committee assists the board in recommending nominees for directors, and in determining the composition of committees. It also reviews, assesses, and makes recommendations to the board concerning policies and guidelines for corporate governance, including relationships of the board, the stockholders and management in determining our direction and performance. The responsibilities of the nominating and corporate governance committee are set forth in a written charter adopted by the board and updated as of October 1, 2013, a copy of which is available on our web site at www.palatin.com/investors/corporate-governance/. The nominating and corporate governance committee is composed of Dr. Prendergast (chair), Ms. Morris and Dr. Manning, each of whom meets the independence requirements established by the NYSE American. Duration of Office. Unless a director resigns, all directors hold office until the next annual meeting of stockholders or until their successors have been elected and qualified. Directors serve as members of committees as the board determines from time to time. Communicating With Directors Generally, stockholders or other interested parties who have questions or concerns should contact Stephen T. Wills, Secretary, Palatin Technologies, Inc., 4B Cedar Brook Drive, Cranbury, NJ 08512. However, any stockholder or other interest party who wishes to address questions regarding our business directly to the board of directors, or any individual director, including the Chairman or non-management directors as a group, can direct questions to the board members or a director by regular mail to the Secretary at the address above or by e-mail at boardofdirectors@palatin.com. Stockholders or other interested parties may also submit their concerns anonymously or confidentially by postal mail. Communications are distributed to the board, or to any individual directors as appropriate, depending on the facts and circumstances outlined in the communication, unless the Secretary determines that the communication is unrelated to the duties and responsibilities of the board, such as product inquiries, resumes, advertisements or other promotional material. Communications that are unduly hostile, threatening, illegal or similarly unsuitable will also not be distributed to the board or any director. All communications excluded from distribution will be retained and made available to any non-management director upon request. Board Role in Risk Oversight Our board, as part of its overall responsibility to oversee the management of our business, considers risks generally when reviewing our strategic plan, financial results, business development activities, legal and regulatory matters. The board satisfies this responsibility through regular reports directly from our officers responsible for oversight of particular risks. The board’s risk management oversight also includes full and open communications with management to review the adequacy and functionality of the risk management processes used by management. The board’s role in risk oversight has no effect on the board’s leadership structure. In addition, committees of the board assist in its risk oversight responsibility, including: · The audit committee assists the board in its oversight of the integrity of the financial reporting and our compliance with applicable legal and regulatory requirements. It also oversees our internal controls and compliance activities and meets privately with representatives from our independent registered public accounting firm. · The compensation committee assists the board in its oversight of risk relating to compensation policies and practices. The compensation committee annually reviews our compensation policies, programs, and procedures, including the incentives they create and mitigating factors that may reduce the likelihood of excessive risk taking, to determine whether they present a significant risk to our company. 71 Table of Contents Board Leadership Structure Since 2000, the roles of chairman of the board and chief executive officer have been held by separate persons. John K.A. Prendergast, Ph.D., a non-employee director, has served as Chairman of the board since June 2000. Carl Spana, Ph.D., has been our Chief Executive Officer and President since June 2000. Generally, the chairman is responsible for advising the chief executive officer, assisting in long-term strategic planning, and presiding over meetings of the board, and the chief executive officer, together with our chief financial officer and chief operating officer, is responsible for leading our day-to-day performance and operations. While we do not have a written policy with respect to separation of the roles of chairman of the board and chief executive officer, the board believes that the existing leadership structure, with the separation of these roles, provides several important advantages, including: enhancing the accountability of the chief executive officer to the board; strengthening the board’s independence from management; assisting the board in reaching consensus on particular strategies and policies; and facilitating robust director, board, and executive officer evaluation processes. Code of Corporate Conduct and Ethics We have adopted a code of corporate conduct and ethics, updated as of March 8, 2021, that applies to all of our directors, officers and employees, including our Chief Executive Officer and Chief Financial Officer. You can view the code of corporate conduct and ethics at our website, www.palatin.com/investors/corporate-governance/. We will disclose any amendments to, or waivers from, provisions of the code of corporate conduct and ethics that apply to our directors, principal executive and financial officers in a current report on Form 8-K, unless the rules of the NYSE American permit website posting of any such amendments or waivers. Executive Officers Executive officers are appointed by the board and serve at the discretion of the board. Each officer holds his position until his successor is appointed and qualified. The current executive officers hold office under employment agreements. Name Age Position with Palatin Carl Spana, Ph.D. 60 Chief Executive Officer, President and Director Stephen T. Wills, MST, CPA 65 Chief Financial Officer, Chief Operating Officer, Executive Vice President, Secretary and Treasurer Additional information about Dr. Spana is included above under the heading “Identification of Directors.” STEPHEN T. WILLS, CPA, MST, currently serves as the Chief Financial Officer (since 1997), Chief Operating Officer (since 2011), Treasurer and Secretary of Palatin. Mr. Wills has served on the board of directors of MediWound Ltd. (Nasdaq: MDWD), a biopharmaceutical company focused on treatment in the fields of severe burns, chronic and other hard to heal wounds, since April 2017, and as Chairman since January 2018, and also has served on the board of directors of Gamida Cell Ltd. (Nasdaq: GMDA), a leading cellular and immune therapeutics company, since March 2019 (chairman of audit committee and member of the compensation and finance committee), and of Amryt Pharma, a biopharmaceutical company focused on developing and delivering treatments to help improve the lives of patients with rare and orphan diseases, since September 2019 (chairman of audit committee and member of the compensation and finance committee). Mr. Wills serves as the Chief Financial Officer of Cactus Acquisition Corp (Nasdaq: CCTS), a Special Purpose Acquisition Company (SPAC). Mr. Wills also serves on the board of trustees and executive committee of The Hun School of Princeton, a college preparatory day and boarding school, since 2013, and as its Chairman since June 2018. Mr. Wills served as Executive Chairman and Interim Principal Executive Officer of Derma Sciences, Inc., a provider of advanced wound care products, from December 2015 to February 2017, when Derma Sciences was acquired by Integra Lifesciences (Nasdaq: IART). Previously, Mr. Wills served on the board of directors of Derma Sciences as the lead director and chairman of the audit committee from June 2000 to December 2015. Mr. Wills served as the Chief Financial Officer of Derma Sciences from 1997 to 2000. Mr. Wills served as the President and Chief Operating Officer of Wills, Owens & Baker, P.C., a public accounting firm, from 1991 to 2000. Mr. Wills, a certified public accountant, earned his Bachelor of Science in accounting from West Chester University, and a Master of Science in taxation from Temple University. 72 Table of Contents Item 11. Executive Compensation. Fiscal 2022 Summary Compensation Table The following table summarizes the compensation earned by or paid to our principal executive officer and our principal financial officer, who constitute all of our executive officers, for fiscal 2022 and fiscal 2021. We have no defined benefit or actuarial pension plan, and no deferred compensation plan. NAME AND PRINCIPAL POSITION FISCAL YEAR SALARY ($) STOCK AWARDS (1) ($) OPTION AWARDS (1) ($) NONEQUITY INCENTIVE PLAN COMPENSATION (2) ($) ALL OTHER COMPENSATION (3) ($) TOTAL ($) Carl Spana, Ph.D., Chief Executive Officer and President 2022 640,000 149,942 269,098 288,000 (4) 15,250 1,362,290 2021 620,000 542,538 193,766 290,000 14,500 1,660,804 Stephen T. Wills, MST, CPA, Chief Financial Officer, Chief Operating Officer and Executive Vice President 2022 590,000 131,356 233,050 265,500 (4) 15,074 1,234,980 2021 570,000 466,064 167,482 267,000 14,933 1,485,479 (1) Amounts in these columns represent the aggregate grant date fair value for stock awards and option awards computed using either the Black-Scholes model or a multifactor Monte Carlo simulation. The aggregate grant date fair value of the performance-based restricted stock units and performance-based stock options granted in fiscal 2022, assuming that the highest level of performance would be achieved, was as follows: for Dr. Spana, $17,992 for performance-based restricted stock units and $36,475 for performance-based stock options; and for Mr. Wills, $16,806 for performance-based restricted stock units and $31,528 for performance-based stock options. The aggregate grant date fair value of the performance-based restricted stock units granted in fiscal 2021, assuming that the highest level of performance would be achieved, was as follows: for Dr. Spana, $155,063; and for Mr. Wills, $131,114. For a description of the assumptions we used to calculate these amounts, see Note 15 to the consolidated financial statements included in this Annual Report. (2) Annual incentive amounts. (3) Consists of matching contributions to 401(k) plan. (4) Bonus amount for fiscal year 2022 paid after fiscal year end but accrued as of June 30, 2022. Base Salary The salary for each named executive officer is based, among other factors, upon job responsibilities, level of experience, individual performance, comparisons to the salaries of executives in similar positions obtained from market surveys, and internal comparisons. The compensation committee considers changes in the base salaries of our named executive officers annually. Effective July 1, 2022, the compensation committee approved increases in base salaries to $700,000 for Dr. Spana and $650,000 for Mr. Wills. Annual Incentive Program We provide annual incentive opportunities to our named executive officers to promote the achievement of annual performance objectives. Each year, the compensation committee establishes the target annual incentive opportunity for each named executive officer, which is based on a percentage of his base salary. 73 Table of Contents The fiscal 2022 annual incentive bonus for the named executive officers was determined based on corporate performance and individual achievements and performance, as warranted. In determining the annual incentive bonus opportunity for executives, the executive’s annual base salary is multiplied by the target bonus percentage. The resulting amount is then multiplied by the corporate performance percentage approved by the compensation committee, which is dependent on the achievement of corporate performance goals, and also potentially adjusted upwards or downwards for individual executives based on their individual contribution toward the corporate results during the relevant year. The corporate objectives are established so that target attainment is not assured. Instead, our executives are required to demonstrate significant effort, dedication, and achievement to attain payment for performance at target or above. The following table briefly describes each category of corporate objectives, the relative weighting of each objective, and the related achievement level for fiscal 2022: CORPORATE OBJECTIVES RELATED TO: WEIGHT ACHIEVEMENT LEVEL DISCRETIONARY ADJUSTMENTS TOTAL WEIGHTED ACHIEVEMENT Vyleesi (bremelanotide) FSD Program 20.0 % 75.0 % 0.0 % 15.0 % Anti-Inflammatory Programs 20.0 % 75.0 % 0.0 % 15.0 % Ocular Programs 35.0 % 71.5 % 0.0 % 25.0 % Other Corporate 25.0 % 80.0 % 0.0 % 20.0 % Total Payout 75.0 % For fiscal 2022, the compensation committee determined that our named executive officers achieved 75.0% of their target objectives. As a result, each named executive officer received a payout under the 2022 annual incentive program equal to 75.0% of his target annual incentive opportunity, or $288,000 for Dr. Spana and $265,500 for Mr. Wills (subject to rounding conventions). 74 Table of Contents Long-Term Incentive Program The total direct compensation levels for our named executive officers are heavily weighted to long-term incentive opportunities. This structure is intended to align executives’ interests with those of our stockholders, enhance our retention incentives and focus our executives on delivering sustainable performance over the longer-term. The design of this program has evolved over the past several years to reflect core performance metrics and an incentive structure the compensation committee believes is necessary to drive our long-term success and that reflects feedback received from investors during our stockholder engagement process. Each year, the compensation committee establishes the target long-term incentive opportunity for each named executive officer, which is based on a percentage of his base salary. For both fiscal 2022 and fiscal 2021, the target long-term incentive opportunity for each named executive officer equaled 250% of base salary for Dr. Spana and 235% of base salary for Mr. Wills, however for fiscal 2022, to conserve the number of available shares under the plan, the target long-term incentive opportunity for each named executive officer was reduced to 33% of target, or 83% of base salary for Dr. Spana and 78% of base salary for Mr. Wills. On June 22, 2022, as part of our fiscal 2023 long-term incentive program, we granted 18,200 time-based restricted stock units and 18,200 performance-based restricted stock units to Dr. Spana, and 15,800 time-based restricted stock units and 15,800 performance-based restricted stock units to Mr. Wills. The time-based restricted stock units vest as to 25% of the number of shares granted at each anniversary of the date of grant. The performance-based restricted stock units vest on annual performance criteria relating to corporate objectives, including stock appreciation, advancement of development programs, and licensing of Vyleesi in additional countries or regions. On June 22, 2022, we granted 27,080 time-based stock options to Dr. Spana and 23,500 time-based stock options to Mr. Wills, which vest as to 25% of the number of shares granted on each anniversary of the date of grant. Additionally on June 22, 2022, we granted 27,080 performance-based stock options to Dr. Spana and 23,500 performance-based stock options to Mr. Wills which vest based on annual performance criteria relating to corporate objectives, including stock appreciation, advancement of development programs, and licensing of Vyleesi in additional countries or regions. The options have an exercise price of $7.25, the fair market value of the common stock on the business day immediately preceding the date of grant, and they expire on June 22, 2032. On June 22, 2021, as part of our fiscal 2022 long-term incentive program, we granted 28,180 time-based restricted stock units and 18,894 performance-based restricted stock units to Dr. Spana, and 24,360 time-based restricted stock units and 15,686 performance-based restricted stock units to Mr. Wills. The time-based restricted stock units vest as to 25% of the number of shares granted at each anniversary of the date of grant. The performance-based restricted stock units vest as to 18,000 restricted stock units, comprising 10,000 to Dr. Spana and 8,000 to Mr. Wills, on performance criteria only if within two years of the date of grant for a twenty consecutive trading day period the price of common stock on the NYSE American for Palatin Technologies, Inc. closes at $50.00 per share or greater (a market condition), and as to 16,580 restricted stock units on annual performance criteria relating to corporate objectives, including stock appreciation, advancement of development programs, and licensing of Vyleesi in additional countries or regions. Additionally on June 22, 2021, we granted 46,000 performance-based stock options and 9,286 performance-based restricted stock units to Dr. Spana and 39,760 performance-based stock options and 8,674 performance-based restricted stock units to Mr. Wills, which were not exercisable or payable unless stockholders approved an increase in our authorized shares and shares reserved under our 2011 Stock Incentive Plan, and which vest based on annual performance criteria relating to corporate objectives, including stock appreciation, advancement of development programs, and licensing of Vyleesi in additional countries or regions. The contingencies underlying these stock options and restricted stock units was deemed satisfied on June 24, 2022, the date our stockholders approved the adoption of an Amendment to the Company’s Certificate of Incorporation to effect a reverse stock split of the Company’s common stock and an Amendment to the Company’s 2011 Stock Incentive Plan to increase the number of shares available for equity awards. 75 Table of Contents On June 22, 2021, we granted 23,000 time-based stock options to Dr. Spana and 19,880 time-based stock options to Mr. Wills, which vest as to 25% of the number of shares granted on each anniversary of the date of grant. Additionally on June 22, 2021, we granted 23,000 time-based stock options to Dr. Spana and 19,880 time-based stock options to Mr. Wills, which were not exercisable unless stockholders approved an increase in our authorized shares and shares reserved under our 2011 Stock Incentive Plan, and which vest as to 25% of the number of shares granted on each anniversary of the date of grant. The options have an exercise price of $13.75, the fair market value of the common stock on the business day immediately preceding the date of grant, and they expire on June 22, 2031. The contingencies underlying these stock options was deemed satisfied on June 24, 2022, the date our stockholders approved the adoption of an Amendment to the Company’s Certificate of Incorporation to effect a reverse stock split of the Company’s common stock and an Amendment to the Company’s 2011 Stock Incentive Plan to increase the number of shares available for equity awards. Employment Agreements Effective July 1, 2022, we entered into employment agreements with Dr. Spana and Mr. Wills which continue through June 30, 2025 unless terminated earlier. Under these agreements Dr. Spana is serving as Chief Executive Officer and President at an initial base salary of $700,000 per year and Mr. Wills is serving as Chief Financial Officer and Chief Operating Officer at an initial base salary of $650,000 per year. Each agreement also provides for: · annual discretionary bonus compensation, in an amount to be decided by the compensation committee and approved by the board, based on achievement of yearly performance objectives; and · participation in all benefit programs that we establish, to the extent the executive’s position, tenure, salary, age, health and other qualifications make him eligible to participate. Each agreement allows us or the executive to terminate the agreement upon written notice and contains other provisions for termination by us for “cause,” or by the employee for “good reason” or due to a “change in control” (as these terms are defined in the employment agreements and set forth below). Early termination may, in some circumstances, result in severance pay at the salary then in effect, plus continuation of medical and dental benefits then in effect for a period of two years. In addition, the agreements provide that options and restricted stock units granted to these officers accelerate upon termination of employment except for voluntary resignation by the officer or termination for cause. In the event of retirement, termination by the officer for good reason, or termination by us other than for “cause”, options may be exercised until the earlier of twenty-four months following termination or expiration of the option term. Arrangements with our named executive officers in connection with a termination following a change in control are described below. Each agreement includes non-competition, non-solicitation and confidentiality covenants. Other Compensation Practices and Policies At our last annual meeting of stockholders on June 24, 2022, our non-binding stockholder advisory vote to approve the compensation of our named executive officers (commonly known as a “Say-on-Pay” vote) was supported by approximately 60% of the votes cast for or against advisory approval. We continue to evaluate our executive compensation program and solicit input from our largest investors. Following is a summary of our current compensation practices and policies. · Retain an Independent Compensation Advisor. The compensation committee engaged Aon Consulting, Inc. through its Aon Rewards Solutions division (“Aon Rewards”), a nationally recognized global human resources consulting firm, as its independent compensation advisor in May 2022. Aon Rewards principally provided analysis, advice, and recommendations on named executive officers and non-employee director compensation. Our compensation peer group for named executive officer awards made in June 2022 was designed to reflect the industry and sector in which Palatin competes, as well as companies comparable to Palatin in terms of company life cycle, phase of development of potential products, market capitalization and talent market, and consists of: AcelRx Pharmaceuticals, Inc. Aldeyra Therapeutics, Inc. Ardelyx, Inc. Clearside Biomedical, Inc. CymaBay Therapeutics, Inc. Geron Corporation Kala Pharmaceuticals, Inc. Kezar Life Sciences, Inc. La Jolla Pharmaceutical Company MEI Pharma, Inc. MeiraGTx Holdings plc Oyster Point Pharma, Inc. Paratek Pharmaceuticals, Inc. RAPT Therapeutics, Inc. Savara Inc. Verastem, Inc. 76 Table of Contents · Compensation at Risk. Our executive compensation program is designed so that a significant portion of compensation is “at risk” based on our performance, as well as short-term cash and long-term equity incentives to align the interests of our executive officers and stockholders. Long-term equity incentives will be no less than base salaries, with at least half of long-term equity incentives being performance-based. · Use a Pay-for-Performance Philosophy. The compensation committee employs a mixture of compensation elements designed to balance short-term goals with longer-term performance. Our executive compensation program includes these principal elements: ○ Base salary, which targets the comparable position median salary for our peer group; ○ An annual incentive compensation opportunity, with a target bonus payout of no less than 60% of base salary, depending on performance; and, ○ A long-term incentive program consisting of stock option and restricted stock unit awards. In fiscal 2022, approximately 50% of all long-term incentive awards were allocated to performance-based stock options and performance-based restricted share units. · Maintain a Stock Ownership Policy. We adopted a stock ownership policy effective April 1, 2019, that requires our named executive officers, as well as our board members, to maintain a minimum ownership level of our common stock. As of June 30, 2022, the most recent “Determination Date” under the stock ownership policy, all current named executive officers and board members meet the target ownership levels of shares with a value equal to at least five times the annual base salary of named executive officers and at least two times the annual retainer for board members. Our stock ownership policy is on our website at www.palatin.com/investors/corporate-governance/. In addition, certain time-based and performance-based restricted stock unit awards contain deferred delivery provisions providing for delivery of the common stock after the grantee’s separation from service or a defined changed in control. · Maintain a Clawback Policy. We have adopted a clawback policy allowing Palatin to recover related compensation should the board determine that compensation paid to named executive officers resulted from material noncompliance with financial reporting requirements under federal securities law. Our clawback policy is on our website at www.palatin.com/investors/corporate-governance/. · Maintain an Independent Compensation Committee. The compensation committee consists entirely of independent directors. · Annual Executive Compensation Review. The compensation committee conducts an annual review and approval of our compensation strategy, utilizing an independent compensation advisor. This review, including a peer group review, is intended to ensure that our compensation programs appropriately reward corporate growth without encouraging excessive or inappropriate risk-taking. · “Double Trigger” Feature for Acceleration of CEO and CFO/COO Equity Awards. Under employment agreements with our named executive officers, outstanding equity awards granted to our named executive officers provide that, upon a change in control of Palatin, the vesting of such awards will accelerate only in the event of a subsequent involuntary termination of employment (a “double-trigger” provision). · No Excise Tax Gross-Ups. Prior to July 1, 2019, our employment agreements for the named executive officers provided that they were entitled to a tax gross-up for any golden parachute excise tax imposed on payments received in connection with a change in control. Most investors disfavor this type of tax gross-up benefit. In response to stockholder feedback, effective with new employment agreements for our named executive officers commencing July 1, 2019, we removed all golden parachute excise tax gross-up provisions. As a result, the Company no longer provides tax gross-ups for named executive officers or any other employees in the event they are subject to golden parachute excise taxes on payments received in connection with a change in control. 77 Table of Contents · No Stock Option Re-pricing. Our 2011 Stock Incentive Plan does not permit options to purchase shares of our common stock to be repriced to a lower exercise or strike price without the approval of our stockholders. · No Dividends or Dividend Equivalents Payable on Unvested or Undelivered Equity Awards. Under our restricted share unit agreements, we do not pay dividends or dividend equivalents on unvested restricted stock unit awards or vested restricted stock unit awards subject to delayed delivery. · No Executive Retirement Plans. We do not offer pension arrangements or retirement plans or arrangements to our executive officers that are different from or in addition to those offered to our other employees. · No Special Welfare or Health Benefits. Our executive officers participate in broad-based Company-sponsored health and welfare benefit programs on the same basis as our other full-time, salaried employees. Outstanding Equity Awards at 2022 Fiscal Year-End The following table summarizes all of the outstanding equity-based awards granted to our named executive officers as of June 30, 2022, the end of our fiscal year. All share numbers are calculated giving effect to the Reverse Stock Split. OPTION AWARDS (1) STOCK AWARDS (2) NAME OPTION OR STOCK AWARD GRANT DATE NUMBER OF SECURITIES UNDERLYING UNEXERCISED OPTIONS (#) EXERCISABLE NUMBER OF SECURITIES UNDERLYING UNEXERCISED OPTIONS (#) UNEXERCISABLE EQUITY INCENTIVE PLAN AWARD: NUMBER OF SECURITIES UNDERLYING UNEXERCISED UNEARNED OPTIONS (#) OPTION EXERCISE PRICE ($) OPTION EXPIRATION DATE NUMBER OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED (#) MARKET VALUE OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED ($) (3) EQUITY INCENTIVE PLAN AWARDS: NUMBER OF UNEARNED SHARES, UNIT OR OTHER RIGHTS THAT HAVE NOT VESTED (#) EQUITY INCENTIVE PLAN AWARDS: MARKET OR PAYOUT VALUE OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED ($)(3) Carl Spana 07/17/12 6,000 - - 18.00 07/17/22 06/27/13 11,000 - - 15.50 06/27/23 06/25/14 7,000 - - 25.50 06/25/24 06/11/15 12,000 - - 27.00 06/11/25 09/07/16 17,280 - - 16.88 09/07/26 06/20/17 37,520 - - 9.25 06/20/27 12/12/17 25,000 - - 21.25 12/12/27 12/12/17 20,000 - - 21.25 12/12/27 06/26/18 21,320 - - 25.00 06/26/28 06/24/19 22,320 7,440 - 33.50 06/24/29 06/16/20 21,430 21,430 - 14.50 06/16/30 06/16/20 18,162 - 24,698 14.50 06/16/30 06/22/21 11,500 34,500 - 13.75 06/22/31 06/22/21 8,625 - 37,375 13.75 06/22/31 06/22/22 - 27,080 - 7.25 06/22/32 06/22/22 - - 27,080 7.25 06/22/32 78 Table of Contents OPTION AWARDS (1) STOCK AWARDS (2) NAME OPTION OR STOCK AWARD GRANT DATE NUMBER OF SECURITIES UNDERLYING UNEXERCISED OPTIONS (#) EXERCISABLE NUMBER OF SECURITIES UNDERLYING UNEXERCISED OPTIONS (#) UNEXERCISABLE EQUITY INCENTIVE PLAN AWARD: NUMBER OF SECURITIES UNDERLYING UNEXERCISED UNEARNED OPTIONS (#) OPTION EXERCISE PRICE ($) OPTION EXPIRATION DATE NUMBER OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED (#) MARKET VALUE OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED ($) (3) EQUITY INCENTIVE PLAN AWARDS: NUMBER OF UNEARNED SHARES, UNIT OR OTHER RIGHTS THAT HAVE NOT VESTED (#) EQUITY INCENTIVE PLAN AWARDS: MARKET OR PAYOUT VALUE OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED ($)(3) 06/24/19 2,360 16,544 3,099 21,724 06/16/20 12,930 90,639 14,902 104,463 06/22/21 21,135 148,156 24,772 173,652 06/22/22 18,200 127,582 18,200 127,582 Total Stock Awards 54,625 382,921 60,973 427,421 Stephen T. Wills 07/17/12 5,400 - - 18.00 07/17/22 06/27/13 10,000 - - 15.50 06/27/23 06/25/14 6,000 - - 25.50 06/25/24 06/11/15 10,800 - - 27.00 06/11/25 09/07/16 15,840 - - 16.88 09/07/26 06/20/17 34,360 - - 9.25 06/20/27 12/12/17 23,000 - - 21.25 12/12/27 12/12/17 14,900 - - 21.25 12/12/27 06/26/18 18,160 - - 25.00 06/26/18 06/24/19 19,140 6,380 - 33.50 06/24/29 06/16/20 18,460 18,460 - 14.50 06/16/30 06/16/20 15,645 - 21,275 14.50 06/16/30 06/22/21 9,940 29,820 - 13.75 06/22/31 06/22/21 7,455 - 32,305 13.75 06/22/31 06/22/22 - 23,500 - 7.25 06/22/32 06/22/22 - - 23,500 7.25 06/22/32 06/24/19 2,020 14,160 2,652 18,591 06/16/20 11,140 78,091 12,838 89,994 06/22/21 18,270 128,073 21,293 149,264 06/22/22 15,800 110,758 15,800 110,758 Total Stock Awards 47,230 331,082 52,583 368,607 _______________________ (1) Stock option vesting schedules: all options granted on or before June 26, 2018 have fully vested. Options granted after June 26, 2018 vest over four years with 1/4 of the shares vesting per year starting on the first anniversary of the grant date, provided that the named executive officer remains an employee; see “Termination and Change-In-Control Arrangements” below for a description of events that could accelerate vesting, except for performance-based options granted on June 16, 2020, June 22, 2021 and June 22, 2022, which vest according to the terms of the grants described above. 79 Table of Contents (2) Time-based stock award vesting schedule: restricted stock units granted on June 24, 2019 as to 9,440 shares for Dr. Spana and 8,080 shares for Mr. Wills; restricted stock units granted on June 16, 2020 as to 25,860 shares for Dr. Spana and 22,280 shares for Mr. Wills; restricted stock units granted on June 22, 2021 as to 28,180 shares to Dr. Spana and 24,360 shares for Mr. Wills and restricted stock units granted on June 22, 2022 as to 18,200 shares for Dr. Spana and 15,800 shares for Mr. Wills, which vest in equal amounts over a four year period, provided that the named executive officer remains an employee. Both time-based and performance-based restricted stock unit awards prior to fiscal 2019 contain deferred delivery provisions providing for delivery of the common stock after the grantee’s separation from service or a defined change in control. See “Stock Options and Restricted Stock Unit Awards” above and “Termination and Change-In-Control Arrangements” below. (3) Calculated by multiplying the number of restricted stock units by $7.01, the closing market price of our common stock on June 30, 2022, the last trading day of our most recently completed fiscal year. Termination and Change-In-Control Arrangements The employment agreements, stock option agreements and restricted stock unit agreements with Dr. Spana and Mr. Wills contain the following provisions concerning severance compensation and the vesting of stock options and restricted stock units upon termination of employment or upon a change in control. The executive’s entitlement to severance, payment of health benefits and accelerated vesting of options is contingent on the executive executing a general release of claims against us. Termination Without Severance Compensation . Regardless of whether there has been a change in control, if we terminate employment for cause or the executive terminates employment without good reason (as those terms are defined in the employment agreement and set forth below), then the executive will receive only his accrued salary and vacation benefits through the date of termination. He may also elect to receive medical and dental benefits pursuant to COBRA for up to two years but must remit the cost of coverage to us. Under the terms of our outstanding options and restricted stock units, all unvested options and restricted stock units would terminate immediately, and vested options would be exercisable for three months after termination. Severance Compensation After Death or Disability. In the event of the executive’s death or disability, we will provide lump sum severance pay equal to 24 months of base pay, as well as the opportunity for COBRA benefits as described above under “Termination Without Severance Compensation.” Severance Compensation Without a Change in Control . If we terminate or fail to extend the employment agreement without cause, or the executive terminates employment with good reason, then the executive will receive as severance pay his salary then in effect, paid in a lump sum, plus medical and dental benefits at our expense, for a period of two years after the termination date. In addition, upon such event all unvested options would immediately vest and be exercisable for two years after the termination date or, if earlier, the expiration of the option term, and all unvested restricted stock units would accelerate and become fully vested. Severance Compensation After a Change in Control . If, within one year after a change in control, we terminate employment or the executive terminates employment with good reason, then the executive will receive as severance pay 200% of his salary then in effect, paid in a lump sum, plus medical and dental benefits at our expense, for a period of two years after the termination date. We would also reimburse the executive for up to $25,000 in fees and expenses during the six months following termination, for locating employment. All unvested options would immediately vest and be exercisable for two years after the termination date or, if earlier, the expiration of the option term. All unvested restricted stock units would vest upon a change in control, without regard to whether the executive’s employment is terminated. Option and Restricted Stock Unit Vesting Upon a Change in Control . Pursuant to the employment agreements, options and restricted stock units granted under the 2011 Stock Incentive Plan vest upon termination of the employee within twelve months following a change in control. If any options granted under the 2005 Stock Plan are to be terminated in connection with a change in control, those options will vest in full immediately before the change in control. 80 Table of Contents Definitions . Under the employment agreements, a “change in control,” “cause” and “good reason” are defined as follows: A “change in control” occurs when: (a) any person or entity acquires more than 50% of the voting power of our outstanding securities; (b) the individuals who, during any twelve-month period, constitute our board of directors cease to constitute at least a majority of the board of directors; (c) the consummation of a merger or consolidation; or (d) we sell substantially all our assets. The term “cause” means: (a) the occurrence of (i) the executive’s material breach of, or habitual neglect or failure to perform the material duties which he is required to perform under, the terms of his employment agreement; (ii) the executive’s material failure to follow the reasonable directives or policies established by or at the direction of our board of directors; or (iii) the executive’s engaging in conduct that is materially detrimental to our interests such that we sustain a material loss or injury as a result thereof, provided that the breach or failure of performance is not cured, to the extent cure is possible, within ten days of the delivery to the executive of written notice thereof; (b) the willful breach by the executive of his obligations to us with respect to confidentiality, invention and non-disclosure, non-competition or non-solicitation; or (c) the conviction of the executive of, or the entry of a pleading of guilty or nolo contendere by the executive to, any crime involving moral turpitude or any felony. The term “good reason” means the occurrence of any of the following, with our failure to cure such circumstances within 30 days of the delivery to us of written notice by the executive of such circumstances: (a) any material adverse change in the executive’s duties, authority or responsibilities, which causes the executive’s position with us to become of significantly less responsibility, or assignment of duties and responsibilities inconsistent with the executive’s position; (b) a material reduction in the executive’s salary; (c) our failure to continue in effect any material compensation or benefit plan in which the executive participates, unless an equitable arrangement has been made with respect to such plan, or our failure to continue the executive’s participation therein (or in a substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of the executive’s participation relative to other participants; (d) our failure to continue to provide the executive with benefits substantially similar to those enjoyed by the executive under any of our health and welfare insurance, retirement and other fringe-benefit plans, the taking of any action by us which would directly or indirectly materially reduce any of such benefits, or our failure to provide the executive with the number of paid vacation days to which he is entitled; or (e) the relocation of the executive to a location which is a material distance from Cranbury, New Jersey. 81 Table of Contents Director Compensation The following table sets forth the compensation we paid to all directors during fiscal 2022, except for Dr. Spana, whose compensation is set forth above in the Summary Compensation Table and related disclosure. Dr. Spana did not receive any separate compensation for his services as a director. Name Fees earned or paid in cash ($) Stock awards ($) (1) (2) Option awards ($) (1) (2) Total ($) John K.A. Prendergast, Ph.D. 97,500 57,750 57,640 212,890 Robert K. deVeer, Jr. 70,000 42,350 42,650 155,000 J. Stanley Hull 60,000 42,350 42,650 145,000 Alan W. Dunton, M.D. 70,000 42,350 42,650 155,000 Arlene Morris 55,000 42,350 42,650 140,000 Anthony Manning, Ph.D. 55,000 42,350 42,650 140,000 _______________________ (1) The aggregate number of shares underlying option awards and unvested stock awards outstanding at June 30, 2022, giving effect to the Reverse Stock Split, for each director was: Option awards Stock awards Dr. Prendergast 41,580 10,360 Mr. deVeer 25,980 6,120 Mr. Hull 25,980 6,120 Dr. Dunton 25,980 5,720 Ms. Morris 24,180 4,920 Dr. Manning 21,280 3,520 (2) Amounts in these columns represent the aggregate grant date fair value for stock awards and option awards. For a description of the assumptions we used to calculate these amounts, see Note 15 to the consolidated financial statements included in this Annual Report. Amounts in this column include options granted on June 22, 2022 for our current fiscal year ending June 30, 2023. Our director compensation program is designed to enhance our ability to attract and retain highly qualified directors and to align their interests with the long-term interests of our stockholders. The program includes an equity component, which is designed to align the interests of non-employee directors and stockholders, and a cash component, which is designed to compensate non-employee directors for their service on the board. Directors who are employees of the Company receive no additional compensation for their service on the board. The compensation committee annually reviews compensation paid to our non-employee directors and makes recommendations for adjustments, as appropriate, to the full board. As part of this annual review, the compensation committee considers the significant time commitment and skill level required by each non-employee director in serving on the board and its various committees. The compensation committee seeks to maintain a market competitive director compensation program and, with the assistance of its independent compensation consultant, Aon Rewards, benchmarks our director compensation program against the peer group we use to evaluate our executive compensation program. Non-Employee Directors’ Equity Grants. Our non-employee directors receive an annual equity grant at the board meeting closest to the beginning of each fiscal year, or such other date as may be determined by the board. On June 22, 2022, the Chairman of the board received 3,960 restricted stock units which vest on June 22, 2023 and an option to purchase 6,920 shares of common stock, and each other serving non-employee director received 2,920 restricted stock units which vest on June 22, 2023 and an option to purchase 5,120 shares of common stock. All of the options have an exercise price of $7.25 per share, the closing price of our common stock on the business day immediately preceding the date of grant, vest in twelve monthly installments beginning July 31, 2021, expire ten years from the date of grant and provide for accelerated vesting in the event of involuntary termination as a director following a change in control, with exercise permitted following accelerated vesting for up to the earlier of one year after termination or the expiration date of the option. On June 22, 2021, the Chairman of the board received 4,200 restricted stock units which vested on June 22, 2022 and an option to purchase 6,920 shares of common stock, and each other serving non-employee director received 3,080 restricted stock units which vested on June 22, 2022 and an option to purchase 5,120 shares of common stock. All of the options have an exercise price of $13.75 per share, the closing price of our common stock on the business day immediately preceding the date of grant, vest in twelve monthly installments beginning July 31, 2021, expire ten years from the date of grant and provide for accelerated vesting in the event of involuntary termination as a director following a change in control, with exercise permitted following accelerated vesting for up to the earlier of one year after termination or the expiration date of the option. 82 Table of Contents Non-Employee Directors’ Cash Compensation . Dr. Prendergast serves as Chairman of the board and for fiscal 2022 received an annual retainer of $87,500, payable quarterly. Other non-employee directors received an annual base retainer of $40,000, payable on a quarterly basis. The chairperson of the audit committee received an additional annual retainer of $20,000, the chairperson of the compensation committee received an additional annual retainer of $20,000 and the chairperson of the corporate governance committee received an additional annual retainer of $10,000. Members of the foregoing committees, other than the non-employee Chairman, received an additional retainer of one-half the retainer payable to the committee chairperson. For the fiscal year ending June 30, 2023, Dr. Prendergast serves as Chairman of the board and will received an annual retainer of $87,500, payable quarterly. Other non-employee directors will receive an annual base retainer of $40,000, payable on a quarterly basis. The chairperson of the audit committee will receive an additional annual retainer of $20,000, the chairperson of the compensation committee will receive an additional annual retainer of $20,000 and the chairperson of the corporate governance committee will receive an additional annual retainer of $10,000. Members of the foregoing committees, other than the non-employee Chairman, receive an additional retainer of one-half the retainer payable to the committee chairperson. The board also formed a program development committee, charged with reviewing new product opportunities and product development strategy. The chairperson of the program development committee receives $3,500 per day of service, and members of the committee receive $2,500 per day of service. Non-Employee Directors’ Expenses. Non-employee directors are reimbursed for expenses incurred in performing their duties as directors, including attending all meetings of the board and any committees on which they serve. Employee Directors. Employee directors are not separately compensated for services as directors but are reimbursed for expenses incurred in performing their duties as directors, including attending all meetings of the board and any committees on which they serve. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Securities Authorized for Issuance Under Equity Compensation Plans. The table below provides information on our equity compensation plans as of June 30, 2022, giving effect to the Reverse Stock Split: Equity Compensation Plan Information as of June 30, 2022 Plan category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by security holders 1,813,111 (1) $ 15.98 (2) 211,821 Equity compensation plans not approved by security holders - - - Total 1,813,111 211,821 (1) Includes 1,163,962 options and 649,149 restricted stock units granted under our 2011 Stock Incentive Plan. (2) The amount in column (a) for equity compensation plans approved by security holders includes 629,549 shares reserved for issuance on vesting of outstanding restricted stock units, granted under our 2011 Stock Incentive Plan, which vest on various dates through June 22, 2026, subject to the fulfillment of service, market conditions, or performance conditions. Because no exercise price is required for issuance of shares on vesting of the restricted stock units, the weighted-average exercise price in column (b) does not take the restricted stock units into account. 83 Table of Contents Beneficial Ownership Tables. The tables below show the beneficial stock ownership and voting power, as of September 20, 2022, of: · each director, each of the named executive officers, and all current directors and officers as a group; and · all persons who, to our knowledge, beneficially own more than five percent of the common stock or Series A preferred stock. “Beneficial ownership” here means direct or indirect voting or investment power over outstanding stock and stock which a person has the right to acquire now or within 60 days after September 20, 2022. See the footnotes for more detailed explanations of the holdings. Except as noted, to our knowledge, the persons named in the tables beneficially own and have sole voting and investment power over all shares listed. The common stock has one vote per share and the Series A preferred stock has approximately 1 vote per share of Series A preferred stock. Voting power is calculated on the basis of the aggregate of common stock and Series A preferred stock outstanding as of September 20, 2022, on which date 9,290,504 shares of common stock and 4,030 shares of Series A preferred stock, convertible into 2,629 shares of common stock, were outstanding. Series B Preferred Stock and Series C Preferred Stock have no voting rights, other than for the Reverse Stock Split, which vote was June 24, 2022, unless such preferred stock is converted to common stock. As of September 20, 2022, there were 8,100,000 shares of Series B Preferred Stock outstanding, convertible into 1,200,000 shares of common stock, and 900,000 shares of Series C Preferred Stock outstanding, convertible into 133,333 shares of common stock. Under our Insider Trading and Securities Law Compliance Policy directors and officers may not engage in hedging, monetization or pledging transactions of our securities. None of the shares of our management and directors shown on the table below are pledged. The address for all members of our management and directors is c/o Palatin Technologies, Inc., 4B Cedar Brook Drive, Cranbury, NJ 08512. Addresses of other beneficial owners are in the table. MANAGEMENT: CLASS NAME OF BENEFICIAL OWNER AMOUNT AND NATURE OF BENEFICIAL OWNERSHIP PERCENT OF CLASS PERCENT OF TOTAL VOTING POWER Common Carl Spana, Ph.D. 429,433 (1) 4.4 % * Common Stephen T. Wills 381,451 (2) 4.0 % * Common John K.A. Prendergast, Ph.D. 66,416 (3) * * Common Robert K. deVeer, Jr. 41,411 (4) * * Common J. Stanley Hull 39,918 (5) * * Common Alan W. Dunton, M.D. 40,340 (6) * * Common Arlene M. Morris 37,426 (7) * * Common Anthony M. Manning, Ph.D. 29,026 (8) * * All current directors and executive officers as a group (eight persons) 1,065,421 (9) 10.5 % 2.0 % 84 Table of Contents _______________ *Less than one percent. (1) Includes 233,157 shares of common stock underlying outstanding options and 148,052 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (2) Includes 203,700 shares of common stock underlying outstanding options and 130,282 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (3) Includes 36,066 shares of common stock underlying outstanding options and 6,400 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (4) Includes 22,566 shares of common stock underlying outstanding options and 3,200 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (5) Includes 22,566 shares of common stock underlying outstanding options and 3,200 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (6) Includes 22,566 shares of common stock underlying outstanding options and 2,800shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (7) Consists of 20,766 shares of common stock underlying outstanding options and 2,000 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. 85 Table of Contents (8) Consists of 17,866 shares of common stock underlying outstanding options and 600 shares of common stock underlying restricted stock units, all of which shares of common stock underlying restricted stock units have vested but not been delivered under deferred delivery provisions providing for delivery after the grantee’s separation from service or a defined change in control, but does not include shares of common stock underlying outstanding options or restricted stock unit awards that have not vested and will not vest within 60 days. (9) Includes 875,787 shares of common stock underlying outstanding options and restricted stock units. MORE THAN 5% BENEFICIAL OWNERS: CLASS NAME AND ADDRESS OF BENEFICIAL OWNER AMOUNT AND NATURE OF BENEFICIAL OWNERSHIP (1) PERCENT OF CLASS PERCENT OF TOTAL VOTING POWER Series A Preferred Steven N. Ostrovsky 43 Nikki Ct. Morganville, NJ 07751 500 12.4 % * Series A Preferred Thomas L. Cassidy IRA Rollover 38 Canaan Close New Canaan, CT 06840 500 12.4 % * Series A Preferred Jonathan E. Rothschild 300 Mercer St., #28F New York, NY 10003 500 12.4 % * Series A Preferred Arthur J. Nagle 19 Garden Avenue Bronxville, NY 10708 250 6.2 % * Series A Preferred Thomas P. and Mary E. Heiser, JTWROS 10 Ridge Road Hopkinton, MA 01748 250 6.2 % * Series A Preferred Carl F. Schwartz 31 West 87th St. New York, NY 10016 250 6.2 % * Series A Preferred Michael J. Wrubel 3650 N. 36 Avenue, #39 Hollywood, FL 33021 250 6.2 % * Series A Preferred Myron M. Teitelbaum, M.D. 175 Burton Lane Lawrence, NY 11559 250 6.2 % * Series A Preferred Laura Gold Galleries Ltd. Profit Sharing Trust Park South Gallery at Carnegie Hall 154 West 57th Street, Suite 114 New York, NY 10019 250 6.2 % * 86 Table of Contents CLASS NAME AND ADDRESS OF BENEFICIAL OWNER AMOUNT AND NATURE OF BENEFICIAL OWNERSHIP (1) PERCENT OF CLASS PERCENT OF TOTAL VOTING POWER Series A Preferred Laura Gold 180 W. 58th Street New York, NY 10019 250 6.2 % * Series A Preferred Nadji T. Richmond 20 E. Wedgewood Glen The Woodlands, TX 77381 230 5.7 % * Series B Preferred Pontifax Medison Finance (Israel) L.P. 14 Shenkar Street Herzelia, Israel 5,664,330 69.9 % (2 ) Series B Preferred Pontifax Medison Finance (Cayman) L.P. 14 Shenkar Street Herzelia, Israel 2,435,670 30.1 % (2 ) Series C Preferred Pontifax Medison Finance (Israel) L.P. 14 Shenkar Street Herzelia, Israel 629,400 69.9 % (2 ) Series C Preferred Pontifax Medison Finance (Cayman) L.P. 14 Shenkar Street Herzelia, Israel 270,600 30.1 % (2 ) _______________ *Less than one percent. (1) Unless otherwise indicated by footnote, all share amounts represent outstanding shares of the class indicated, and all beneficial owners listed have, to our knowledge, sole voting and dispositive power over the shares listed. (2) Series B and C Preferred Stock has no right to vote at any future meeting of stockholders unless converted to common stock. Series B and C Preferred Stock exercised its right to vote in favor of the Reverse Stock Split at the annual meeting of stockholders held on June 24, 2022, but under the certificates of designation this was the only material item on which the Series B and C Preferred Stock had the right to vote. Item 13. Certain Relationships and Related Transactions, and Director Independence. The board of directors has determined that all the directors except for Dr. Spana (our Chief Executive Officer and President) are independent directors, as defined in the listing standards of the NYSE American. As a condition of employment, we require all employees to disclose in writing actual or potential conflicts of interest, including related party transactions. Our code of corporate conduct and ethics, which applies to employees, officers and directors, requires that the audit committee review and approve related party transactions. Since July 1, 2021, there have been no transactions or proposed transactions in which we were or are to be a participant, in which any related person had or will have a direct or indirect material interest. Item 14. Principal Accounting Fees and Services. KPMG LLP (“KPMG”), Philadelphia, PA, Auditor Firm ID, 185 , served as our independent registered public accounting firm for fiscal 2022 and fiscal 2021. Audit Fees . For fiscal 2022, fees for professional services rendered for the audit of our annual consolidated financial statements and review of our consolidated financial statements in our Forms 10-Q and services provided in connection with regulatory filings and comfort letters were $433,000 For fiscal 2021, fees for professional services rendered for the audit of our annual consolidated financial statements and review of our consolidated financial statements in our Forms 10-Q were $398,000. 87 Table of Contents Audit-Related Fees . For fiscal 2022 and fiscal 2021, KPMG did not perform or bill us for any audit-related services. Tax Fees . For fiscal 2022, KPMG billed us $22,000 for professional services rendered for tax compliance services. For fiscal 2021, KPMG billed us $18,600 for professional services rendered for tax compliance services. All Other Fees . KPMG did not perform or bill us for any services other than those described above for fiscal 2022 and fiscal 2021. Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors . Consistent with SEC policies regarding auditor independence, the audit committee has responsibility for appointing, setting compensation for and overseeing the work of the independent registered public accounting firm. In recognition of this responsibility, the audit committee has established a policy to pre-approve all audit and permissible non-audit services provided by the independent registered public accounting firm. The audit committee pre-approves fees for each category of service. The fees are budgeted and the audit committee requires the independent registered public accounting firm and management to report actual fees versus the budget periodically throughout the year by category of service. During the year, circumstances may arise when it may become necessary to engage the independent registered public accounting firm for additional services not contemplated in the original pre-approval. In those instances, the audit committee requires specific pre-approval before engaging the independent registered public accounting firm. The audit committee may delegate pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the audit committee at its next scheduled meeting. 88 Table of Contents PART IV Item 15. Exhibits, Financial Statement Schedules. (a) Documents filed as part of the report: 1. Financial statements: The following consolidated financial statements are filed as a part of this report under Item 8 – Financial Statements and Supplementary Data: — Report of Independent Registered Public Accounting Firm — Consolidated Balance Sheets — Consolidated Statements of Operations — Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Equity — Consolidated Statements of Cash Flows — Notes to Consolidated Financial Statements 2. Financial statement schedules: None. 3. List of Exhibits The following exhibits are incorporated by reference or filed as part of this report: Exhibit Number Description Filed Herewith Form Filing Date SEC File No. 1.1 Equity Distribution Agreement, dated April 20, 2018, by and between Palatin Technologies, Inc. and Canaccord Genuity LLC 8-K April 20, 2018 001-15543 1.2 Equity Distribution Agreement, dated June 21, 2019, by and between Palatin Technologies, Inc. and Canaccord Genuity LLC 8-K June 21, 2019 001-15543 3.1 Restated Certificate of Incorporation of Palatin Technologies, Inc., as amended. 10-K September 27, 2013 001-15543 3.2 Amended and Restated Bylaws of Palatin Technologies, Inc. 8-K September 17, 2021 001-15543 3.3 Certificate of Designation of Series B Convertible Redeemable Preferred Stock. 10-Q May 16, 2022 001-15543 3.4 Certificate of Designation of Series C Convertible Redeemable Preferred Stock. 10-Q May 16, 2022 001-15543 3.5 Certificate of Elimination with respect to Series A Preferred Stock and Series B Preferred Stock. 10-Q May 16, 2022 001-15543 3.6 Certificate of Decrease of Series A Convertible Preferred Stock 10-Q May 16, 2022 001-15543 3.7 Certificate of Amendment to the Restated Certificate of Incorporation of Palatin Technologies, Inc., as amended. 8-K August 31, 2022 001-15543 4.1 Form of Series A 2012 Warrant. 8-K July 6, 2012 001-15543 89 Table of Contents Exhibit Number Description Filed Herewith Form Filing Date SEC File No. 4.2 Form of Series B 2012 Warrant. 8-K July 6, 2012 001-15543 4.3 Form of Series C 2014 Common Stock Purchase Warrant. 8-K December 30, 2014 001-15543 4.4 Form of Series D 2014 Common Stock Purchase Warrant. 8-K December 30, 2014 001-15543 4.5 Form of Series E 2015 Common Stock Purchase Warrant. 8-K July 7, 2015 001-15543 4.6 Form of Series F 2015 Common Stock Purchase Warrant. 8-K July 7, 2015 001-15543 4.7 Form of Series G 2015 Common Stock Purchase Warrant. 8-K July 7, 2015 001-15543 4.8 Form of Series H 2016 Common Stock Purchase Warrant. 8-K August 2, 2016 001-15543 4.9 Form of Series I 2016 Common Stock Purchase Warrant. 8-K August 2, 2016 001-15543 4.10 Form of Series J 2016 Common Stock Purchase Warrant. 8-K December 1, 2016 001-15543 4.11 Form of warrant issued to PSL Business Development Consulting and SARL Avisius in connection with a contract for financial advisory services. 10-Q February 10, 2017 001-15543 4.12 Description of Securities 10-K September 12, 2019 001-15543 10.1† 1996 Stock Option Plan, as amended. 10-K September 28, 2009 001-15543 10.2† Form of Option Certificate (Incentive Option) Under the 2005 Stock Plan. 8-K September 21, 2005 001-15543 10.3† Form of Incentive Stock Option Under the 2005 Stock Plan. 8-K September 21, 2005 001-15543 10.4† Form of Option Certificate (Non-Qualified Option) Under the 2005 Stock Plan. 8-K September 21, 2005 001-15543 10.5† Form of Non-Qualified Stock Option Agreement Under the 2005 Stock Plan. 8-K September 21, 2005 001-15543 10.6† 2007 Change in Control Severance Plan. 10-Q February 8, 2008 001-15543 10.7† 2005 Stock Plan, as amended. 10-Q May 15, 2009 001-15543 10.8† Form of Executive Officer Option Certificate. 10-Q May 14, 2008 001-15543 10.9† Form of Amended Restricted Stock Unit Agreement. 10-Q May 14, 2008 001-15543 10.10† Form of Amended Option Certificate (Incentive Option) Under the 2005 Stock Plan. 10-Q May 14, 2008 001-15543 10.11† 2011 Stock Incentive Plan, as amended and restated. 8-K June 29, 2020 001-15543 90 Table of Contents Exhibit Number Description Filed Herewith Form Filing Date SEC File No. 10.12† Form of Restricted Share Unit Agreement Under the 2011 Stock Incentive Plan. 10-Q May 13, 2011 001-15543 10.13† Form of Nonqualified Stock Option Agreement under the 2011 Stock Incentive Plan. 10-Q May 13, 2011 001-15543 10.14† Form of Incentive Stock Option Agreement under the 2011 Stock Incentive Plan. 10-Q May 13, 2011 001-15543 10.15† Form of Restricted Share Unit Agreement under the 2011 Stock Incentive Plan. 8-K December 11, 2015 001-15543 10.16† Form of Performance-Based Restricted Share Unit Agreement under the 2011 Stock Incentive Plan. 8-K December 11, 2015 001-15543 10.17† Form of Restricted Share Unit Agreement for Non-Employee Directors under the 2011 Stock Incentive Plan. 8-K December 11, 2015 001-15543 10.18† Amended form of Restricted Share Unit Agreement under the 2011 Stock Incentive Plan. 10-Q February 12, 2016 001-15543 10.19† Amended form of Performance-Based Restricted Share Unit Agreement under the 2011 Stock Incentive Plan. 10-Q February 12, 2016 001-15543 10.20† Amended form of Restricted Share Unit Agreement for Non-Employee Directors under the 2011 Stock Incentive Plan. 10-Q February 12, 2016 001-15543 10.21 Form of Indenture. S-3 August 17, 2018 333-226905 10.22 Amended and Restated Venture Loan and Security Agreement, dated July 2, 2015, by and between Palatin Technologies, Inc. and Horizon Technology Finance Corporation, Fortress Credit Co LLC, Horizon Credit II LLC and Fortress Credit Opportunities V CLO Limited. 8-K July 7, 2015 001-15543 10.23†† Termination and Release Agreement dated September 29, 2020, by and between Catalent Belgium S.A. and Palatin Technologies, Inc. 10-Q November 16, 2020 001-15543 10.24†† Commercial Supply Agreement dated September 29, 2020, by and between Catalent Belgium S.A. and Palatin Technologies, Inc. 10-Q November 16, 2020 001-15543 10.25†† License Agreement, dated January 8, 2017, by and between AMAG Pharmaceuticals, Inc. and Palatin Technologies, Inc. 10-Q February 10, 2017 001-15543 91 Table of Contents Exhibit Number Description Filed Herewith Form Filing Date SEC File No. 10.26†† License Agreement, dated September 6, 2017, by and between Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. and Palatin Technologies, Inc. 10-Q November 13, 2017 001-15543 10.27† Employment Agreement, effective as of July 1, 2022, between Carl Spana and Palatin Technologies, Inc. 8-K June 24, 2022 001-15543 10.28† Employment Agreement, effective as of July 1, 2022, between Stephen T. Wills and Palatin Technologies, Inc. 8-K June 24, 2022 001-15543 10.29 Termination Agreement between Palatin Technologies, Inc. And AMAG Pharmaceuticals, Inc., dated July 24, 2020. 8-K July 27, 2020 001-15543 10.30††† Manufacturing Services Agreement, dated as of June 1, 2019, by and between Palatin Technologies, Inc. (as assignee from AMAG Pharmaceuticals, Inc.) and Lonza Ltd. 10-K September 25, 2020 001-15543 10.31††† Supply Agreement, dated as of December 20, 2018, by and between Palatin Technologies, Inc. (as assignee from AMAG Pharmaceuticals, Inc.) and Ypsomed AG. 10-K September 25, 2020 001-15543 10.32 Commercial Supply Agreement dated September 29, 2020, by and between Catalent Belgium S.A. and Palatin Technologies, Inc. 10-Q November 16, 2020 001-15543 10.33††† Termination and Release Agreement dated September 29, 2020, by and between Catalent Belgium S.A. and Palatin Technologies, Inc. 10-Q November 16, 2020 001-15543 10.34 Form of Securities Purchase Agreement, dated May 11, 2022, by and among Palatin Technologies, Inc., Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P. 10-Q May 16, 2022 001-15543 10.35 Form of Common Stock Purchase Warrant. 10-Q May 16, 2022 001-15543 10.36 Form of Common Stock Purchase Warrant. 10-Q May 16, 2022 001-15543 21 Subsidiary of Palatin Technologies, Inc. X 23 Consent of KPMG LLP. X 31.1 Certification of Chief Executive Officer. X 31.2 Certification of Chief Financial Officer. X 92 Table of Contents Exhibit Number Description Filed Herewith Form Filing Date SEC File No. 32.1 Certification of principal executive officer pursuant to U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. X 32.2 Certification of principal financial officer pursuant to U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. X 101.INS Inline XBRL Instance Document. X 101.SCH Inline XBRL Taxonomy Extension Schema Document. X 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. X 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. X 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. X 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. X 104 Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101). X † Management contract or compensatory plan or arrangement. †† Confidential treatment granted as to certain portions of the exhibit, which portions are omitted and filed separately with the SEC. ††† Portions of the exhibit are omitted pursuant to Regulation S-K Item 601(b)(10). Palatin agrees to furnish to the U.S. Securities and Exchange Commission a copy of any omitted schedule and/or exhibit upon request. The confidential portions of this exhibit were omitted by means of marking such portions with asterisks because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed. Item 16. Form 10-K Summary. None. 93 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PALATIN TECHNOLOGIES, INC. By: /s/ Carl Spana Carl Spana, Ph.D. President and Chief Executive Officer (principal executive officer) Date: September 22, 2022 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ Carl Spana President, Chief Executive Officer and Director September 22, 2022 Carl Spana (principal executive officer) /s/ Stephen T. Wills Executive Vice President, Chief Financial Officer September 22, 2022 Stephen T. Wills and Chief Operating Officer (principal financial and accounting officer) /s/ John K. A. Prendergast Chairman and Director September 22, 2022 John K. A. Prendergast /s/ Robert K. deVeer, Jr. Director September 22, 2022 Robert K. deVeer, Jr. /s/ J. Stanley Hull Director September 22, 2022 J. Stanley Hull /s/ Alan W. Dunton Director September 22, 2022 Alan W. Dunton /s/ Arlene M. Morris Director September 22, 2022 Arlene M. Morris /s/ Anthony M. Manning Director September 22, 2022 Anthony M. Manning 94